Everyone worships P/E — but the real king is P/B.

👑 P/B >>> P/E. I genuinely believe Price-to-Book (P/B) is more important than Price-to-Earnings (P/E). Not always. But in most cases where real value matters, P/B tells you the truth that P/E hides. But opinions could differ.

My reasons :

1. Earnings can be deferred, or inflated. Loss statements for tax benefits. Book value,while imperfect, reflects what’s actually owned. When earnings collapse, book value still stands.

2. A company with a strong equity base and low leverage can outlast noise.

3. If we know how efficiently the company turns equity into profit (ROE), and how richly that equity is priced (P/B), you already know how “fair” the earnings are. I believe that’s literally how Buffett screens businesses.

4. Only points I could think that could be against, would be "intangible" assets that can't come up in Book value.

When you strip away all the hype and earnings games, you’re left with equity value. That’s book value — the real wealth beneath the noise. And how much you pay for it decides whether you’re a value investor or just another speculator.